China: Wood processing consolidations

Posted by Jo English on 19th October 2018

In China, a massive restructuring effort to eliminate outdated and polluting wood processing mills, many of them being plymills had, by the end of 2017, resulted in around 3,000 plywood mills across the country being closed.

A total of 621 fibreboard production lines were dismantled or shut down eliminating over 20 million cubic metres of production capacity. However, within a year fibreboard output had recovered.

In addition, more than 900 particleboard production lines were either relocated or closed reducing the installed production capacity by around 17 million cubic metres. Overall in 2017 there was a 15% decline in the number of wood-based panel enterprises.

These changes affected mainly the smaller companies such that by the end of 2017 production capacity had consolidated in fewer but large and medium-sized enterprises. This restructuring has resulted in an increase in cross-industry mergers and acquisitions within the industry.

By the end of 2017 there were 117 continuous flat pressure fibreboard production lines throughout the country with an annual production capacity of 19.4 million cubic metres accounting for 41% of the national total production capacity of fibreboard. There were also 40 continuous flat pressure particleboard production lines in operation.